Cid must be thoroughly devastated. And once you visit him on the Fire-Powered Ship, this seems to be exactly the case. The poor guy blames himself for the creation of the machines and the subsequent destruction of the three crystals. He flees from your sight before you can tell him all is okay. It'd be best to seek him out.

Karnak City is in chaos with the sudden disappearance of the powers of Fire. The wounded Queen Karnak is in the top floor of the Inn. Nightmares plague her. A new weapon salesman has appeared too in the Weapon/Armor Shop, though.

Weapon Shop 2: Some new weapons for your now Jobs, basically, although none of them are very useful at this point. The Mythril Spear isn't equipable by any Job you currently have, not even the new ones. There's no reason to buy it, really. The Kunai adds 1 point to your Agility, but as a weapon it's weaker than the Main Gauche, the Moonring Blade and the Mage Mashers you could have stolen. You already have a Whip, and the Diamond Bell, like almost all bells, is worthless.

Cid can be found in the top floor of the Pub, but he doesn't really want to talk to you. Hey, if he doesn't want to be helped, we can't force him. And sad as it may be, there are more important matters to attend to. We've still got a single Crystal left, and we have no idea where it is. Maybe the library has some answers for us; with the destruction of Karnak Castle the path to the place was opened, and since Cid's grandson Mid lives there, so maybe we can send the lad over to Cid to do some cheering. Two birds and such. Don't forget to grab the Flame Rod on the western wall of Karnak, which you can now reach due to the absence of the flames blocking your path.

Silent Bee rarely uses Needle, a magical attack that sets either Dark or Silence (equal chance). Unassuming in any other regard, but being blinded is annoying.

Mythril Dragon has great Defense and no elemental weakness, which makes them quite hard to take down. When it has lost over half their HP (300) it will use the Blue spell Transfusion the next turn on any monster that isn't itself. You can steal rare Mythril Armor from them, but you shouldn't waste time as you can simply buy them in Karnak too. They very rarely drop Mythril Gloves, too.

Dhorme Chimera is the most interesting enemy right now. They live in the desert, and are mentioned by a scholar in Karnak. They're supposed to be quite frightening. They can either use Battle, !Critical (x 1.5) and the Blue spell Aqua Breath. Since they have a Defense and Magic Defense score of 20 and have 1000 HP, you'll be hard-pressed to kill them quickly. I suggest you Save on the Overworld Map and wander into the desert with a Blue Mage or the Learning support ability equipped. Level 2 elemental Black spells hurt him relatively badly, as do Axes/Hammers, Shiva and Released Grass Tortoises.

Make sure to learn Aqua Breath here. Aqua Breath is a crazy expansive Blue magic spell. It's multi-target and NON-elemental. That's right, no Water element there. What it does have is the fact it deals eight times as much damage to Desert creatures. An upcoming boss battle will feature a creature of this type, so make sure to learn it here. Transfusion can be learned in the forests surrounding the Library of the Ancients. The White Confuse spell can confuse the Mythril Dragon which will in turn have a chance to cast Transfusion on a character with the Learning ability. The Beastmaster's !Control ability is superior, obviously, as it allows you to choose Transfusion's target at will, but you probably don't have it yet.

Now, enter the Library of the Ancients, where answers await.

Note: you could continue down south-west, where you could eventually enter the desert there. Despite the fact the quicksand stops you from entering too far you could net a random encounter or two. There's no point in doing so though, so I won't mention them until you're forced to pass through.